Year end may seem far away.  But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year.  Following is a list of selected deduction and exclusion items to consider.  Don’t use the list as a tax planning worksheet.  Rather, think of it as an exercise to help with your tax planning efforts and a good conversation starter for the next time we visit.  Bear in mind that various limitations may apply to the items listed.

 

DEDUCTIBLE UNREIMBURSED EMPLOYEE EXPENSES

  • Business travel expenses.
  • Business education expenses.
  • Professional organization or chamber of commerce dues.
  • License fees.
  • Impairment-related work expenses.
  • Depreciation on home computers your employer requires you to use in work.

 

DEDUCTIBLE MONEY MANAGEMENT COSTS

  • Tax preparation fees.
  • Depreciation on home computers used to produce investment income.
  • Investment interest expenses.
  • Dividend reinvestment plan service charges.
  • Loss of deposits due to financial institution insolvency.

 

DEDUCTIBLE PERSONAL EXPENDITURES

  • Income, real estate and personal property taxes (state, foreign and local).
  • Medical and dental expenses.
  • Qualifying charitable contributions.
  • Personal casualty and theft loss.

 

INCOME EXCLUDABLE FROM TAXABLE INCOME

  • Health and most life insurance proceeds.
  • Military allowances and veterans benefits.
  • Some scholarship and grant proceeds.
  • Some Social Security benefits.
  • Worker’s compensation proceeds.